Each month MOTM brings you an exclusive preview analysis of residential real estate sales during the past month, compiled by the Southwestern Michigan Association of Realtors:
Southwest Michigan’s housing market sales in May 2025 bounced back from the weak results in April. As the opening month of the 2025 peak selling season, the number of houses sold was up 17 percent over that in May 2024. Homebuyers found the average selling price to be 7 percent lower than in May 2024.
The number of houses sold in May jumped 17 percent to 261 from 224 in May 2024. Year-to-date, the number of houses sold increased 3 percent (1011 vs. 978).
The inventory of houses for sale grew 18 percent over what was available a year ago (950 vs. 804). At the end of May, there was a 5.7-months supply of houses. This level still needs to be higher for buyers searching for listings for sale across Allegan, Berrien, Cass, and the westerly two-thirds of Van Buren counties. For comparison, in May 2010 during the Great Recession, there were 3602 houses for sale.
In May 2025, the average selling price fell 7 percent to $385,028 from $415,329 in May 2024. Howeer, in 2025Year-to-date, the average selling price increased 4 percent ($373,899 vs. $360,014).
The median selling price in May 2025 grew 8 percent to $313,225 from $289,000 in May 2024. Year-to-date, the median selling price rose 14 percent to $301,710 from $264,326 in May 2024.
The median price is the price at which 50% of the homes sold were above that price and 50% were below.
The increase in the number of house sales in May raised the total dollar volume 9 percent compared to a year ago ($101,858,629 vs. $93,236,931). The year-to-date total dollar volume leaped 18 percent ($414,086,980 vs. $352,132,253).
The number of bank-owned or foreclosed homes as a percentage of all transactions was 2 percent (6 houses). The previous low percentage was 1 percent (2 houses) in May 2024, and the highest percentage in May was 34 percent in 2009.
The Freddie Mac mortgage rate in May was 6.89, up from 6.81 in April for a 30-year conventional mortgage. A year ago, the rate was 7.03.
This data reflects home sales across Allegan, Berrien, Cass, and the westerly two-thirds of Van Buren counties and should not be used to determine the market value of any individual property. If you want to know the market value of your property, please contact your local REALTOR®.
Here are some ‘best practices’ to keep in mind when contemplating the purchase or sale of a home, courtesy of the Southwestern Michigan Association of Realtors.
When Selling a Home…
As a home seller, you have choices when deciding how to market your property, including whether you’d like to offer concessions to attract buyers or close a deal. Here’s what you need to know as you consider whether this approach is right for you:
A concession is when a seller pays for certain costs associated with purchasing a home for the buyer. Concessions could make your property more attractive to buyers or lead to a better or faster offer. Concessions also help make home ownership more accessible for buyers by reducing upfront expenses, so buyers with limited cash reserves may be able to stretch their budget further.
Concessions can include covering costs associated with a title search, loan origination, inspection, homeowners’ association fees, real estate taxes, or home repairs and updates. They can also be used to cover fees for professionals such as agents and appraisers.
Concessions can be advertised upfront or negotiated as part of a home purchase agreement. In the agreement, a concession is often written as a specific dollar amount. Seller concessions are usually not binding until they are put in a purchase agreement.
Concessions can cover a variety of costs or fees for a buyer associated with purchasing a home, whereas an offer of compensation is specifically when the seller or their agent agrees to compensate a buyer’s agent for bringing a buyer who successfully closes the transaction.
Concessions can be advertised publicly, shared on a Multiple Listing Service (MLS), or discussed during purchase negotiations. Keep in mind that not all MLSs allow concessions to be advertised, and some only allow you to indicate whether you are offering a concession with a simple “yes” or “no.”
The limit on the total value of concessions you can offer depends on the terms set by the buyer’s lender and state law. However, any payment you offer toward the buyer’s broker’s fee is excluded from the limits set by the buyer’s lender and must be made off-MLS.
When you work with an agent who is a REALTOR®, you are working with a professional guided by ethical duties under the REALTOR® Code of Ethics, including the pledge to protect and promote the interests of their clients. Your agent will work with you to weigh your options, answer questions, and develop a strategy you are confident in. It is a REALTOR’S® duty to put client interests above their own.
When Buying a Home…
Whether you are a first-time buyer or planning your next move, you should consider many factors as you prepare for the home purchase process.
Before beginning the search process, you should consider what type of home best suits your needs taking into account factors such size, location, convenience (including proximity to public transportation, schools, or recreational facilities), privacy, and amenities. It is also important to account for how your needs may change in the future. When deciding on which agent to work with, keep in mind that a REALTOR® is obligated to Put Client Interests Above Their Own. You can also ask a REALTOR® if they are familiar with your preferred markets and what their strategy is.
Establishing a good credit history takes time, and it is never too early to start working on it. Your credit score will impact your approval for a home loan and the terms of your mortgage, including how much you can borrow and what programs will lend to you. Buyers with strong credit scores may be eligible for lower interest rates on their mortgages. Using credit cards and paying the balance off on time and in full each month can help you improve or start building your credit score.
Getting pre-approved for a mortgage can help buyers better compete in high-demand housing markets and, in some cases, can be required to make an offer. Pre-approval requires verified financial information and is different than pre-qualification, which provides an estimate of how much you can borrow using self-reported information. However, pre-approval does not lock in your mortgage rate, which may change with the market.
While down payments are typically 10-20% of a home’s purchase price, some buyers may qualify to pay a lower down payment, such as 3-5% of the purchase price through a government-backed mortgage, such as Federal Housing Administration (FHA) loans and the Veterans Administration (VA), or down payment assistance programs. However, these lower down payments often require mortgage insurance. A higher down payment can help you avoid the cost of mortgage insurance and potentially help you qualify for a better interest rate.
In addition to your down payment, mortgage payments, and closing costs, there are other expenses to budget for when preparing to buy a home. Items like moving, maintenance, repair costs, utilities, monthly bills, homeowners’ insurance, and property taxes are also key considerations. Some buyers may also need to factor in annual or monthly payments to a homeowner’s association (HOA) or hazard insurance for floods or fires.
For many buyers, the process of purchasing a home can seem complicated and overwhelming. Prospective buyers can participate in homebuyer education classes or work with a HUD- certified housing counselor to gain tools and information to help resolve financial roadblocks, develop a budget, and work on a plan to meet the financial requirements of homeownership. Agents who are REALTORS® and your state and local REALTOR® Associations can help you find the right resources for your needs.
While preparing to buy a home can take time, the process may move quickly once you begin looking at homes. Be prepared to act fast on a desired property or risk missing out on the first home you wish to purchase, because you can’t act fast enough. Be sure to consider your timeline and flexibility well in advance.
To view properties that are for sale in your local area, go to www.swmar.com and click on “Property Search”.
The Southwestern Michigan Association of REALTORS®, Inc. is a professional trade association for real estate professionals who are members of the National Association of REALTORS®, and ancillary service providers for the real estate industry in Allegan, Berrien, Cass, and Van Buren Counties. The Association can be contacted at 269-983-6375 or through their website at www.swmar.com
